US operator Cincinnati Bell will list CyrusOne, its data centre operating subsidiary, in a flotation that could raise up to US$300m for the telco.
CyrusOne said it intends to operate as a real estate investment trust (Reit), according to its SEC filing….
US operator Cincinnati Bell will list CyrusOne, its data centre operating subsidiary, in a flotation that could raise up to US$300m for the telco.
CyrusOne said it intends to operate as a real estate investment trust (Reit), according to its SEC filing. Reits receive special tax considerations and typically offer investors high yields as they have to distribute a minimum of 90% of their taxable profits as dividends.
Cincinnati Bell said a portion of the proceeds from the IPO will be used to repay outstanding debts owed to it by CyrusOne.
Morgan Stanley and Bank of America Merrill Lynch will act as joint book-running managers according to Cincinnati Bell. Deutsche Bank and Barclays are also underwriting the offering according to CyrusOne’s filing.
Cincinnati Bell said it expects the unit to be ready for the IPO in the fourth quarter, according to Reuters.
